Key Points
What is a 98% home loan? A 98% home loan is essentially a 95% home loan with the cost of Lenders Mortgage Insurance (LMI) up to 3% added on to your home loan balance.
Since LMI can cost tens of thousands of dollars, adding that to your loan (LMI capitalisation) means you don’t have to come up with the extra funds upfront, allowing you to buy a home to live in sooner rather than later.
A 98% home loan is essentially a 95% home loan with the cost of Lenders Mortgage Insurance (LMI) up to 3% added on to your home loan balance.
Since LMI can cost tens of thousands of dollars, adding that to your loan (LMI capitalisation) means you don’t have to come up with the extra funds upfront, allowing you to buy a home to live in sooner rather than later.
Will I get approved? - You must have a minimum deposit of at least 5%.
- You must be buying a property to live in (owner-occupier). It cannot be an investment purchase.
- You must be earning a sufficient income to meet your loan repayments, living expenses and your existing debt without hardship which is known as serviceability ratio.
- You must have a clear credit report, that means no prior defaults, judgement, writ or bankruptcy. Low credit scores can be considered.
- Refinances are not accepted.
- The maximum loan amount varies between $900,000 – $1.15 million on a lender specific basis.
- You must have a minimum deposit of at least 5%.
- You must be buying a property to live in (owner-occupier). It cannot be an investment purchase.
- You must be earning a sufficient income to meet your loan repayments, living expenses and your existing debt without hardship which is known as serviceability ratio.
- You must have a clear credit report, that means no prior defaults, judgement, writ or bankruptcy. Low credit scores can be considered.
- Refinances are not accepted.
- The maximum loan amount varies between $900,000 – $1.15 million on a lender specific basis.
Lenders available: Select bank and non-bank lenders are available. Contact us now to find out more.
Select bank and non-bank lenders are available. Contact us now to find out more.
Discover if you qualify: Talk to one of our specialist mortgage brokers to find out if you qualify for a 98% home loan.
Talk to one of our specialist mortgage brokers to find out if you qualify for a 98% home loan.
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